US-listed spot Bitcoin exchange-traded funds attracted fresh capital this week as a high-profile hardware-wallet breach renewed focus on custody risk. According to SoSoValue, spot Bitcoin ETFs logged net inflows of $211.5 million on Tuesday, following $170 million of inflows on Monday.
The increased interest came amid continuing fallout from the Coldcard incident. Researchers at Galaxy Research estimate the attack may have affected up to 7,300 addresses and resulted in roughly $130 million of suspected Bitcoin losses among users of the hardware wallet.
BlackRock’s iShares Bitcoin Trust (IBIT) drove much of the ETF inflows, with about $111 million on Monday and $170 million on Tuesday, according to Farside Investors data. Fidelity’s Wise Origin Bitcoin Fund (FBTC) added around $33 million and $20 million on those days, respectively. Invesco Galaxy Bitcoin ETF (BTCO) reported $6.7 million in inflows on Monday — its first positive daily flow since July 1 — representing roughly 3.9% of BTCO’s cumulative net inflows of $172 million.
Galaxy Research and Alex Thorn, the firm’s head of firmwide research, have been among the most visible groups tracking the Coldcard breach, publishing estimates of affected addresses and potential losses.
The incident has reignited a long-running debate in crypto over self-custody versus institutional custody. Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, suggested the Coldcard event could tilt some investors toward ETFs, arguing that reliance on established financial custodians may be viewed increasingly as a feature rather than a bug when compared with smaller crypto-focused custody providers.
Broader ETF-market moves were also noted by observers, including the recent closure of Hashdex’s spot Bitcoin ETF and BlackRock’s planned reverse split for its Ethereum ETF, developments that feed into evolving investor preferences and product structures.
Bitcoin’s price stayed relatively steady while traders weighed the custody concerns and other selling pressure, such as a 1,638 BTC sale attributed to Michael Saylor’s investment vehicle. At the time of reporting, Bitcoin traded near $64,113, about 0.8% lower over the prior seven days, with the seven-day low dipping below $62,500.
Some commentators pointed out that attackers may struggle to monetize large stolen balances quickly because Bitcoin transactions are transparent and on-chain movements can attract scrutiny from blockchain analysts, exchanges and law-enforcement–adjacent actors.
This report is for informational purposes only and does not constitute investment advice or recommendations. All trading and investing carry risk; readers should perform their own research and consider consulting a qualified financial advisor.